Circular No. 3669 — Establishes Procedures for Preparing and Submitting the Combined Trial Balance of the Cooperative System and for Preparing and Disclosing the Combined Balance Sheet of the Cooperative System

The Collegiate Board of the Central Bank of Brazil, in a session held on October 2, 2013, based on Art. 9 of Law No. 4.595 of December 31, 1964, and Art. 8 of Resolution No. 4.151 of October 30, 2012,

RESOLVES:

Art. 1 Cooperative banks, credit confederations, and central credit cooperatives must prepare and submit, quarterly, to the Central Bank of Brazil, the Combined Trial Balance of the Cooperative System referred to in Resolution No. 4.151 of October 30, 2012, complying with the following accounting document codes and Catalog of Documents (Cadoc) codes:

I - central credit cooperatives: Document 4433 and Cadoc code 43.1.4.002-0;

II - credit confederations: Document 4423 and Cadoc code 45.1.4.001-1;

III - cooperative commercial bank: Document 4413 and Cadoc code 20.1.4.042-1; and

IV - cooperative multiple bank: Document 4413 and Cadoc code 26.1.4.247-8.

§ 1 The values of the Combined Trial Balance of the Cooperative System must be expressed in reais, including cents.

§ 2 Cooperative banks, credit confederations, and central credit cooperatives must prepare and submit the Combined Trial Balance of the Cooperative System referred to in the main text even if their equity is already included in a Combined Trial Balance prepared by another entity of the cooperative system.

Art. 2 The Combined Trial Balance of the Cooperative System must be submitted by the last business day of the month following the respective base date.

Sole Paragraph. For the submissions of the document referred to in the main text, relating to base dates from June 2013 to June 2014, the following deadlines must be observed:

I - the June 2013 trial balance must be submitted by November 30, 2013; and

II - the trial balances of September 2013, December 2013, March 2014, and June 2014 must be submitted by the last business day of the second month following the respective base date.

Art. 3 For the preparation of the Combined Trial Balance of the Cooperative System, the primary accounting statements of the institutions comprising the combined cooperative system, corresponding to the same base date, at the stage immediately preceding the distribution of results, must be used.

Art. 4 The institutions referred to in Art. 1 must make all necessary adjustments so that, in the evaluation and recognition of assets, liabilities, revenues, and expenses of the entities participating in the combined cooperative system, the same classifications, criteria, procedures, and accounting policies used by the institution preparing the Combined Trial Balance of the Cooperative System are applied.

Art. 5 The Combined Trial Balance of the Cooperative System must cover, at each base date, the total of the institutions belonging to the respective levels of accounting combination, considering those included in the period and disregarding those excluded.

Art. 6 All investment funds in which the entities comprising the combined cooperative system assume or retain substantially all risks and benefits, in any form, must be integrated into the Combined Trial Balance of the Cooperative System.

Sole Paragraph. The consolidation referred to in the main text must allow for the line-by-line identification of the fund's equity composition, even in cases of indirect participation and control.

Art. 7 In the event of transactions carried out between institutions comprising the same combined cooperative system, the following procedures must be observed:

I - elimination of the balances of any accounts, represented in the assets of one institution, against the respective balances represented in the liabilities of the other; and

II - elimination of unrealized results included in the assets of one institution, against the respective result of the period or equity of the other.

Art. 8 In the event of equity participations between the entities comprising the combined cooperative system, the following procedures must be observed:

I - elimination of the investment value of one institution against the corresponding participation in the equity of the other, observing the existence of declared result distributions between both, which must be eliminated;

II - elimination of the provision for losses on investments, against the corresponding balance constituted due to imminent loss in transactions carried out by the investee;

III - elimination of any reciprocal participations;

IV - presentation of the portion corresponding to any goodwill or discount not absorbed in the combination, as follows:

a) in specific asset accounts, demonstrating the difference, higher or lower, between the acquisition cost of the asset and the book value of that same asset in the entity included in the combination;

b) in intangible assets, demonstrating the difference, higher, due to the expectation of profitability based on result projections or due to other economic reasons; or

c) as a result of future periods, demonstrating the difference, lower, due to the expectation of loss based on result projection, or other economic reasons; and

V - reclassification of the net result of the period of the portion corresponding to tax charges arising from unrealized results, relating to transactions carried out between institutions of the combined cooperative system, to:

a) current assets or current liabilities, respectively, profit or loss or, in the case of cooperatives, surpluses or losses resulting, under the title Deferred Taxes, if realization is expected during the following fiscal year; or

b) long-term realizable assets or long-term payable liabilities, respectively, profit or loss or, in the case of cooperatives, surpluses or losses resulting, under the title Deferred Taxes, if realization is expected after the end of the following fiscal year.

Art. 9 The institutions mentioned in Art. 1 that opt to prepare and disclose the Combined Balance Sheet of the Cooperative System based on the accounting information contained in the Combined Trial Balance of the Cooperative System, as provided in Art. 5 of Resolution No. 4.151 of 2012, must observe the preparation and disclosure criteria for accounting statements provided in the Chart of Accounts of the Institutions of the National Financial System (Cosif), including with respect to the disclosure of information in explanatory notes.

§ 1 The inclusion of information in the document publication models that improves the quality and transparency of the statements is permitted.

§ 2 The institutions referred to in Art. 1 are authorized to present comparative combined accounting statements provided in this Circular for base dates prior to June 30, 2014.

Art. 10 The institutions mentioned in Art. 1 that opt to prepare and disclose the Combined Balance Sheet of the Cooperative System must do so for all base dates, for at least three complete fiscal years.

Art. 11 In addition to the procedures provided in this Circular for the preparation of the Combined Trial Balance of the Cooperative System, the procedures provided in Cosif for operational consolidation must be observed, where applicable.

Art. 12 This Circular enters into force on the date of its publication.

Luiz Awazu Pereira da Silva
Regulation Director